Problem 18-5 Calculating an IRA Accumulation (L018-5] When Jamal graduated from college recently, his parents gave him $1,170 and told him to use it wisely. Jamal decided to use the money to start a retirement account. After doing some research about different options, he put the entire amount into a tax-deferred IRA that pays 12 percent interest, compounded annually. Calculate how much money Jamal will have in his IRA at the end of 10 years, assuming that the interest rate remains the same and that he does not deposit any additional money. Use Exhibit 1-A. (Round time value factor to 3 decimal places and answer to 2 decimal places.) IRA balance Exhibit 1-A Future value (compounded sum) of $1 after a given number of time periods Period 1% 2% 2 3% 4% 5% 6% 1 1.010 1.020 1.030 1.040 1.050 1.060 2. 1.020 1.040 1.061 1.082 1.103 1.124 3 1.030 1.061 1.093 1.125 1.158 1.191 4 1.041 1.082 1.126 1.170 1.216 1.262 5 5 1.051 1.104 1.159 1.217 1.276 1.338 6 1.062 1.126 1.194 1.265 1.340 1.419 7 1.072 1.149 1.230 1.316 1.407 1.504 8 1.083 1.172 1.267 1.369 1.477 1.594 9 1.094 1.195 1.305 1.423 1.551 1.689 10 1.105 1.219 1.344 1.480 1.629 1.791 11 1.116 1.243 1.384 1.539 1.710 1.898 12 1.127 1.268 1.426 1.601 1.796 2.012 13 1.138 1.294 1.469 1.665 1.886 2.133 14 1.149 1.319 1.513 1.732 1.980 2.261 15 1.161 1.346 1.558 1.801 2.079 2.397 16 1.173 1.373 1.605 1.873 2.183 2.540 17 1.184 1.400 1.653 1.948 2.292 2.693 18 1.196 1.428 1.702 2.026 2.407 2.854 19 1.208 1.457 1.754 2.107 2.527 3.026 20 1.220 1.486 1.806 2.191 2.653 3.207 25 1.282 1.641 2.094 2.666 3.386 4.292 30 1.348 1.811 2.427 3.243 4.322 5.743 40 1.489 2.208 3.262 4.801 7.040 10.286 50 1.645 2.692 4.384 7.107 11.467 18.420 7% 1.070 1.145 1.2251 1.311 1.403 1.501 1.606 1.718 1.838 1.967 2.105 2.252 2.410 2.579 2.759 2.952 3.1591 3.380 3.617 3.870 5.427 7.612 14.974 29.457 8% 1.080 1.166 1.260 1.360 1.469 1.587 1.714 1.851 1.999 2.159 2.332 2.518 2.720 2.937 3.172 3.426 3.700 3.996 4.316 4.661 6.848 10.063 21.725 46.902 9% 1.090 1.188 1.295 1.412 1.539 1.677 1.828 1.993 2.172 2.367 2.580 2.813 3.066 3.342 3.642 3.970 4.328 4.717 5.142 5.604 8.623 13.268 31.409 74.358 10% 1.100 1.210 1.331 1.464 1.611 1.772 1.949 2.144 2.358 2.594 2.853 3.138 3.452 3.797 4.177 4.595 5.054 5.560 6.116 6.727 10.835 17.449 45.259 117.391 11% 1.110 1.232 1.368 1.518 1.685 1.870 2.076 2.305 2.558 2.839 3.152 3.498 3.883 4.310 4.785 5.311 5.895 6.544 7.263 8.062 13.585 22.892 65.001 184.565 Period 1 2 3 4 5 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 40 50 12% 1.120 1.254 1.405 1.574 1.762 1.974 2.211 2.476 2.773 3.106 3.479 3.896 4.363 4.887 5.474 6.130 6.866 7.690 8.613 9.646 17.000 29.960 93.051 289.002 13% 1.130 1.277 1.443 1.630 1.842 2.082 2.353 2.658 3.004 3.395 3.836 4.335 4.898 5.535 6.254 7.067 7.986 9.024 10.197 11.523 21.231 39.116 132.782 450.736 14% 1.140 1.300 1.4821 1.689 1.925 2.195 2.502 2.853 3.252 3.707 4.226 4.818 5.492 6.261 7.138 8.137 9.276 10.575 12.056 13.743 26.462 50.950 188.884 700.233 15% 1.150 1.323 1.521 1.749 2.011 2.313 2.660 3.059 3.518 4.046 4.652 5.350 6.153 7.076 8.137 9.358 10.761 12.375 14.232 16.367 32.919 66.212 267.864 1083.657 16% 1.160 1.346 1.561 1.811 2.100 2.436 2.826 3.278 3.803 4.411 5.117 5.936 6.886 7.988 9.266 10.748 12.468 14.463 16.777 19.461 40.874 85.850 378.721 1670.704 17% 1.170 1.369 1.602 1.874 2.1921 2.565 3.001 3.511 4.108 4.807 5.624 6.580 7.699 9.007 10.539 12.330 14.426 16.879 19.748 23.106 50.658 111.065 533.869 2566.215 18% 1.180 1.392 1.643 1.939 2.2881 2.700 3.185 3.759 4.435 5.234 6.176 7.288 8.599 10.147 11.974 14.129 16.672 19.673 23.214 27.393 62.669 143.371 750.378 3927.357 19% 1.190 1.416 1.6851 2.005 2.3861 2.840 3.379 4.021 4.785 5.695 6.777 8.064 9.596 11.420 13.590 16.172 19.244 22.901 27.252 32.429 77.3881 184.675 1051.668 5988.914 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 6.192 7.430 8.916 10.699 12.839 15.407 18.488 22.186 26.623 31.948 38.338 95.396 237.376 1469.772 9100.438 25% 1.250 1.563 1.953 2.441 3.052 3.815 4.768 5.960 7.451 9.313 11.642 14.552 18.190 22.737 28.422 35.527 44.409 55.511 69.389 86.736 264.698 807.794 7523.1641 70064.923 30% 1.300 1.690 2.197 2.856 3.713 4.827 6.275 8.157 10.604 13.786 17.922 23.298 30.288 39.374 51.18 66.542 86.504 112.45 146.192 190.050 705.641 2619.996 36118.865 497929.223
